HRM textbook

LEARNING OBJECTIVES
1. List the basic factors determining pay rates.
2. Define and give an example of how to conduct
a job evaluation.
3. Explain in detail how to establish a market-competitive
pay plan.
4. Explain how to price managerial and professional jobs.
5. Explain the difference between competency-based
and traditional pay plans.
6. List and explain six important trends in compensation
management.
Company s
Strategic Goals
Employee Competencies
and Behaviors Required
for Company to Achieve
These Strategic Goals
Compensation
The retail grocery business is highly competitive.
Therefore, when Walmart moves into a grocery s
area, the knee-jerk reaction is to cut costs, particularly
wages and benefits. So as Wegman s Food
Markets, Inc., adds more stores and increasingly competes
with Walmart, its management needs to decide this: Should
we cut pay to better compete based on cost, or pursue a
Training and
Development
HR Policies and Practices
Required to Produce
Employee Competencies
and Behaviors
Relations
Employee
different compensation policy? 1 WHERE ARE WE NOW . . .
Placement
Recruitment and
Strategic and Legal
Environment
Once you ve appraised and coached your
employees, they ll expect to be paid. Of
course, few firms just pay employees
arbitrarily. Each employee s pay should make
sense in terms of what other employees earn,
and this requires a pay plan. The main purpose
of this chapter is to show you how to establish
a pay plan. We explain job evaluation
techniques for finding the relative worth of a
job and how to conduct online and offline
salary surveys. We also explain how to price
the jobs in your firm by developing pay grades
and an overall pay plan. The next chapter
focuses specifically on pay-for-performance
and incentive plans.
Access a host of interactive learning aids at
www.mymanagementlab.com to help strengthen
your understanding of the chapter concepts.
MyManagementLab
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